FxWirePro: GBPJPY Weekly Outlook

Ichimoku Analysis (Weekly Chart)

Tenken-Sen- 140.84

Kijun-Sen- 138.96                            

GBPJPY continues to trade higher for 4th consecutive week and surged nearly 450 pips. The pair was one of the best performers in the past 2 months and rose more than 6% on weak yen.  The upbeat market sentiment due to central bank stimulus and decreasing number of coronavirus cases is putting pressure on yen. USDJPY holds well above 105 levels.  Any violation above 105.67 (200- day MA) targets 106.25/106.50.

GBPUSD trading higher despite strong USD after BOE confirms that there will not be negative interest rates for the next six months. Any surge past 1.3760 confirms a bullish continuation.

Technical:

 The pair's significant resistance at 145, any convincing break above targets 146.81/147.95. The decline from 156.60 will get completed at 123.99 once if it breaks 156.60. On the lower side, near term support is around 143.70, and any violation below targets 142.84/142.20/ 141.80/141.20.

Indicator (Weekly chart)

CAM indicator –Bullish

Directional movement index – Bullish

It is good to buy on dips around 144.10-15 with SL around 142.85 for the TP of 146.81.